Carefully explain the impact on the money demand curve, money supply curve, equilibrium interest rate and the quantity of money due to each of the following: The government receives a U.S. dollar loan and exchanges it for local currency at the central bank so it can pay public sector salaries in local currency. Impact on Choose... increase employment decrease wage rate decrease employment shift outwards / to the right O O
Carefully explain the impact on the money demand curve, money supply curve, equilibrium interest rate and the quantity of money due to each of the following: The government receives a U.S. dollar loan and exchanges it for local currency at the central bank so it can pay public sector salaries in local currency. Impact on Choose... increase employment decrease wage rate decrease employment shift outwards / to the right O O
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Answer each question using the options provided
![Carefully explain the impact on the money
demand curve, money supply curve, equilibrium
interest rate and the quantity of money due to
each of the following:
The government receives a U.S. dollar loan and
exchanges it for local currency at the central
bank so it can pay public sector salaries in local
currency.
Impact on
money supply
curve
Impact on
money
demand curve
Impact on
quantity of
money
Impact on
equilibrium
interest rate
Choose...
Choose...
Choose...
Choose...
Choose...
increase employment
decrease wage rate
decrease employment
shift outwards / to the right
increase wage rate
change in quantity is uncertain
change in wage rate is uncertain O
curve unchanged (movement
along the curve)
employment unchanged
shift inwards / to the left
wage rate unchanged](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f6b0b4f-b2af-4aad-be6e-623efce50807%2F3b545476-c413-438e-a5e2-ede6673104b1%2Fuqrg4j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Carefully explain the impact on the money
demand curve, money supply curve, equilibrium
interest rate and the quantity of money due to
each of the following:
The government receives a U.S. dollar loan and
exchanges it for local currency at the central
bank so it can pay public sector salaries in local
currency.
Impact on
money supply
curve
Impact on
money
demand curve
Impact on
quantity of
money
Impact on
equilibrium
interest rate
Choose...
Choose...
Choose...
Choose...
Choose...
increase employment
decrease wage rate
decrease employment
shift outwards / to the right
increase wage rate
change in quantity is uncertain
change in wage rate is uncertain O
curve unchanged (movement
along the curve)
employment unchanged
shift inwards / to the left
wage rate unchanged
![Carefully explain the impact on the money
demand curve, money supply curve, equilibrium
interest rate and the quantity of money due to
each of the following:
The government receives a U.S. dollar loan and
exchanges it for local currency at the central
bank so it can pay public sector salaries in local
currency.
Impact on
money supply
curve
Impact on
money
demand curve
Impact on
quantity of
money
Impact on
equilibrium
interest rate
Choose...
Choose...
Choose...
Choose...
Choose...
unchanged
shift outwards / to the right
shift inwards / to the left
decrease
increase](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f6b0b4f-b2af-4aad-be6e-623efce50807%2F3b545476-c413-438e-a5e2-ede6673104b1%2F8aqj5q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Carefully explain the impact on the money
demand curve, money supply curve, equilibrium
interest rate and the quantity of money due to
each of the following:
The government receives a U.S. dollar loan and
exchanges it for local currency at the central
bank so it can pay public sector salaries in local
currency.
Impact on
money supply
curve
Impact on
money
demand curve
Impact on
quantity of
money
Impact on
equilibrium
interest rate
Choose...
Choose...
Choose...
Choose...
Choose...
unchanged
shift outwards / to the right
shift inwards / to the left
decrease
increase
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